Break Your Bad Habits

10 Bad Financial Habits you ought to break

Most of us have got bad habits of some sort – its all part of being human. But with inflation rising faster than our salaries poor money management shouldn’t be one of them. Here are 10 bad financial habits you ought to break.

1. Living beyond your means

If you find yourself having to borrow money every month to make ends meet, you are already on the downhill slope of serious debt problems. You have to make a start and begin budgeting your finances. Make a list of all your income and outgoings to give yourself an overview of where your money is going. Analyse areas where you could cut back. Ask yourself, ‘do I really need those glossy magazines each month or that expensive satellite subscription’? Shop around for cheaper deals.

2. Living for today

Cut down on being spontaneous with your finances. We’ve all been there, blown our salaries in next to no time on things we don’t really need. But spending everything we earn and not keeping some for a rainy day is a recipe for disaster. Shop around for a high interest savings account along with a direct debt from your salary account. Even if its only a small amount, its all helps and will give you greater financial security in the event of an emergency.

3. Credit cards

Stop collecting credit cards! You could be doing serious damage to your finances and credit rating. Don’t be enticed by introductory offers, the novelty will soon wear off when you see all that debt piling up! Go through your statements and pay off the credit cards with the highest interest rates. Take any cards out of your wallet and put them somewhere where you will not see them on a daily basis, better still, cut them up! Keeping hold of a credit card and not spending on it requires a great deal of will power for most of us. Learn to say NO! If you are struggling with your debts and need some credit card debt help call us free on 0800 043 2027.

4. Not being credit card savvy

Don’t think your being clever by moving balances around from card to card taking advantage of 0% deals. Not only will you be paying balance transfer fees you may be damaging your credit rating if you take out too many credit cards. The main aim is to get your cards paid off in full so look for extra income opportunities and find ways of cutting back on your spending.

5. Do you know how much you owe?

Most of us are not even aware of exactly how much debt we owe and who we owe it to. Checking your credit report is a good way to find out all your financial commitments. Your credit report will list all of your borrowings, from your credit cards and loans to your mortgage along with a record of your repayments. Lenders use this to see how reliable you are in repaying your debts. For more information on rebuilding your credit rating click here.

6. Burying your head in the sand

Don’t think your money troubles will sort themselves out. This is a classic sign of denial and won’t get you anywhere. If you have taken out a Bad Credit Loan,Debt Consolidation Loan, credit card or Remortgage and are struggling to make the repayments, speak to the UK Debt Advisor as soon as you can. We can help reduce hassle from your creditors, can look to freeze interest and charges and get you a lower monthly repayment.

7. Putting your identity at risk
Be careful when disposing of credit card statements and receipts or giving your information to cold callers. You are opening yourself up to fraud. Criminals can use your data to steal your identity and purchase things with your account details. Always destroy your financial paperwork effectively. Consider getting a shredder. You can pick these up from Tesco from as little as £15.

8. Missing payments

Its easy to forget a monthly repayment, especially when unexpected bill crop up. Be careful though. Missing payments regularly will not only incur additional interest and charges but could seriously damage your credit rating. Lenders are less likely to offer you the best deals if you have been missing regular payments.

9. Failing to plan for retirement

It may be the last thing on your mind at the moment but sooner or later you are going to have to think about your retirement. The earlier you start a pension the better. Talk to an IFA (Independent Financial Advisor) about the best options available to you.

10. Forgetting to reward yourself

Rewarding yourself for good behaviour is an important factor to become free from debt. Don’t be too hard on yourself and make sure you treat yourself now and then. This way, you are less likely to go on a financial binge!